Traditionally, advisory boards are used in non-profit settings, but advisory boards are such a powerful tool that no small business should be without one. Advisory boards are important to dynamic, growing companies (such as Ripple Effect Communications) because board members bring fresh ideas to the CEO and management staff. Outside, global perspectives that are separate and apart from the internal goals and objectives of the company are invaluable.
Here is a 3-step process for setting up your own advisory board:
1. Design the Purpose of Your Board
A board purpose should be captured in a charter, which should articulate the following:
- Activities and expectations for board members
- Qualifications for membership and selection
- Number and types of members
- Compensation
- Membership liability and confidentiality
- Frequency and location of meetings
2. Recruit and Select the Appropriate Members
A board should be comprised of members who have unique individual expertise and should be structured so that ideas flow from the board into the company rather than from the company out to the board. Members should be able to:
- Establish vision and direction
- Ensure the company’s financial health
- Convey fresh, new ideas to ensure growth and profitability
- Maintain a high level of executive management
- Establish or uphold strong community relations
To be the most effective, the credentials, experience, and/or skill sets that advisory board members, collectively, should possess, include:
- Being able to define a specialized market niche depending on competition, where client needs exist, and/or where trends dictate (e.g., broadening our current expertise into other Government agencies where we are not represented and/or into commercial markets)
- Being knowledgeable of the current Government market—emphasis on new target agencies
- Being able to recruit key/strategic hires
- Possessing people management skills—attracting and keeping talent engaged
- Being experienced in identifying potential acquisitions and implementing next steps
3. Meetings
Meetings should be held quarterly or twice a year. The agenda should be centered around the goals of the company and what they are trying to achieve.
